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Import Processing Charges Amendment Bill 2013

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2013

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

HOUSE OF REPRESENTATIVES

 

 

 

IMPORT PROCESSING CHARGES AMENDMENT BILL 2013

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Immigration and Border Protection,

the Honourable Scott Morrison MP)



IMPORT PROCESSING CHARGES AMENDMENT BILL 2013

 

OUTLINE

 

1.      The Import Processing Charges Amendment Bill 2013 will implement a revenue measure that was announced as part of the 2013-14 Budget. The purpose of this Bill is to amend the Import Processing Charges Act 2001 (the IPC Act) to increase the import processing charges levied on air, sea and post consignments, including post, with a value of $10,000 or more. The increased charges will apply from 1 January 2014. The Import Processing Charges have not increased since 2005-06.

 

2.      This Bill introduces a two tiered charging arrangement with increased charges to apply for air, sea and post import consignments with a value of $10,000 or more. The import processing charge will increase for sea consignments lodged electronically from $50.00 to $152.60 and sea consignments lodged manually from $65.75 to $152.60. The charges for air and post consignments lodged electronically will increase from $40.20 to $122.10 and for air and post consignments lodged manually; the charges will increase from $48.85 to $122.10.

 

3.      Under current legislation, an import processing charge is levied on air, sea and post consignments that have a customs value equal to or greater than $1,000. Air, sea and post consignments that are valued at $1,000 or less are currently exempt from the import processing charge. The current rates for import processing charges for consignments valued at less than $10,000 will continue to apply. In line with current arrangements, the import processing charge will not apply to air, sea and post consignments with a value of $1,000 or less.

 

4.      A tiered charging structure is being introduced to address the issue that low value imports would experience higher increases in charges as a proportion of their value, due to the import processing charge being a fixed dollar amount. The increased costs that will be borne by importers of air, sea and post consignments with a value of $10,000 or more costs will be small (expected to be no more than 1%) when compared to the overall costs associated with importation. 

 

5.      The import processing charges that currently exist in the Import Processing Act 2001 recover only the commercial aspects of import processing activity and do not fully recover the ACBPS’s full costs associated with cargo and trade related activity.  For example, community protection costs incurred by the ACBPS as part its import processing activities are not currently cost recovered as part of the import processing charges.  The Bill will amend the Import Processing Charges Act 2001 to broaden the cost base of the import processing charges so that all of the ACBPS costs including community protection costs, are cost recovered.  Under the new arrangements, the increased  import processing charge will recover all costs associated with import processing activity including; cargo screening costs, targeting and risk assessment costs; compliance, investigations and prosecution costs as well  as all other cargo and trade related activities. 

 

6.      The cost recovery arrangements proposed under this Bill will therefore give effect to the Government’s decision to fully recover the cost of cargo and trade related undertaken by the ACBPS and are consistent with the requirements of the General Agreement on Tariffs and Trade (GATT) as the revised charges will not “exceed the approximate cost” of the cargo and trade related activities undertaken by the ACBPS.

 

FINANCIAL IMPACT STATEMENT

The introduction of this Bill will generate an estimated $673.4 million across the forward estimates from 2013-14.  A delay in introducing this legislation will have a financial impact on the Budget balance of an estimated $15 million per month as this revenue has already been factored into the forward estimates.  

 



Statement of Compatibility with Human Rights

 

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

 

IMPORT PROCESSING CHARGES AMENDMENT BILL 2013

 

This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .

 

 

Overview of the Bill

 

The Bill will amend the Import Processing Charges Act 2001 to increase import processing charges for air, sea, and post consignments with a value of $10,000 or more.

 

 

Human rights implication

 

The Bill does not raise any human rights issues. It simply increases import processing charges. Import processing charges have not been increased since 2005-06 and the revised amounts of the charges are directly related to Australian Customs and Border Protection’s cargo and trade related costs.

 

 

Conclusion

 

The Bill is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

 

 

 

 

 

The Minister for Immigration and Border Protection, the Honourable Scott Morrison MP

 

 



IMPORT PROCESSING CHARGES amendment BILL 2013

 

 

NOTES ON CLAUSES

 

Clause 1 - Short title

 

1.      This clause provides for the Bill, when enacted, to be cited as the Import Processing Charges Amendment Act 2013 .

 

Clause 2 - Commencement

 

2.      This clause provides that the Act commences on 1 January 2014.

 

Clause 3 - Schedule(s)

 

3.      This clause is the formal enabling provision for the Schedule to the Bill, providing that each Act specified in a Schedule is amended in accordance with the applicable items of the Schedule.  This Bill amends the Import Processing Charges Act 2001 .

 

4.      The clause also provides that the other items of the Schedules have effect according to their terms. This is a standard enabling clause for transitional, savings and application items in amending legislation. 



Schedule 1 - Amendments

 

Import Processing Charges Act 2001

 

Items 1 and 2 - Paragraphs 5(3)(a) to (f) and 5 (6)(a) to (f)

 

5.      Section 5 of the Import Processing Charges Act 2001 (the Act) specifies the amounts of import processing charges. Section 5 contains two kinds of import processing charges:

a.   Import declaration processing charges (specified in subsection (3)); and

b.   Warehouse declaration processing charges (specified in subsection (5)).

 

6.      Section 71B of the Customs Act 1901 (the Act) sets out when an import processing charge becomes payable and section 71DI sets out when a warehouse declaration processing charge becomes payable.

 

7.      Currently, for goods imported into Australia by air, the import declaration processing charge and warehouse declaration processing charge is set at $40.20 for an electronic import declaration and $48.85 for a documentary import declaration. This Bill increases those amounts to $122.10 or such other amount (not exceeding $183.15) as is prescribed.

 

8.      For goods imported into Australia by sea, the current import declaration processing charge and warehouse declaration processing charge is set at $50 for an electronic import declaration and $65.75 for a documentary import declaration. This Bill increases those amounts to $152.60 or such other amount (not exceeding $228.90) as is prescribed.

 

9.      The import declaration processing charge and warehouse declaration processing charge for an electronic or documentary import declaration and electronic or documentary warehouse declaration that relates to goods imported into Australia through the post will, in line with the increase to goods imported into Australia by air, also be increased to $122.10 or such other amount (not exceeding $183.15) as is prescribed. Currently, the charge for an electronic import declaration for goods imported by post is $40.20 and the rate for a documentary import declaration is $48.85.

 

10.   Item 1 will adjust the import processing charges.

 

11.   Item 2 will adjust the warehouse declaration charges

 



Item 3 - Application provision

 

12.   Item 3 inserts an application provision which provides that the amendments which increase import processing charges will apply in relation to goods which are imported into Australia on or after 1 January 2014.